Polish Enterprise Fund VII, a private equity fund managed by Enterprise Investors (EI), has signed an agreement to acquire a 65% stake in Pan-Pek, a leading bakery producer and retailer in Croatia.

EI will team up with Ivan Parać, the founder and CEO of Pan-Pek, to facilitate the company's dynamic future growth;

The value of the transaction was not disclosed.

Pan-Pek was established in 1992. Today it is one of the biggest producers of frozen bakery products in the Adriatic region, serving modern grocery retailers in Croatia. Pan-Pek also operates its own network of bakery outlets numbering around 50 stores, predominantly in the Zagreb area. Through its retail operations the company offers a variety of breads, baguettes and sandwiches that customers can enjoy at home or on the go. In recent years Pan-Pek introduced state-of-the-art, fully automated production lines for selected product categories, and continues to invest in modern equipment. In some categories the company has unparalleled production capacities across the Adriatic region. The main factory is in Zagreb, with a second smaller plant located in Dakovo, Eastern Croatia. In 2017 Pan-Pek generated over EUR 32 million in revenue. The company currently employs over 700 people.

"We are convinced that the bake-off market in Croatia will develop on the back of continuous growth of the modern food retail channel. Under Ivan Parać, who is an exceptionally experienced and skilled entrepreneur, Pan-Pek will strengthen its leading position in the Adriatic region," said Michał Kędzia, partner at Enterprise Investors responsible for the investment. "In addition, we believe that in the next five years we will significantly expand Pan-Pek's retail operations," he added.

"I am very proud that Pan-Pek will partner with Enterprise Investors, one of CEE's biggest and most experienced private equity funds. With this support, we will significantly strengthen our position on the market, developing together with our suppliers to meet the growing expectations of our customers in both the wholesale and retail channels," said Ivan Parać, CEO of Pan-Pek.